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Basic Question 14 of 26
If inventory costs remain relatively constant from period to period, which inventory methods are the most appropriate in the allocation of cost flow between COGS and inventory carrying value?
II. FIFO
III. Weighted average method
IV. LIFO
I. Specific identification method
II. FIFO
III. Weighted average method
IV. LIFO
User Contributed Comments 3
| User | Comment |
|---|---|
| ColonelCFA | the things you learn... |
| schweitzdm | Constant prices = same results |
| choas69 | Given stable prices; inventory, COGS and Earnings will have the same results. |
I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
describe the measurement of inventory at the lower of cost and net realisable value and its implications for financial statements and ratios
CFA® 2024 Level I Curriculum, Volume 2, Module 6.